How costly are regular mutual funds compared to direct plans?

[ShubhS9]

@Sanyam_Shah

I can not understand how is it possible?

As if Direct Plan NAV is 1, then Regular Plan NAV is always 0.98 or something.

If my buying cost is also low, how can there be a gap in returns, as NAV is already discounted.

Please someone explain,

You can watch this Varsity video, it’ll clear all your doubts:

How do mutual funds earn money?

So far in the series, we’ve discussed why you should invest, why mutual funds are ideal for long-term investing, and the various types of mutual funds. If you are investing in a mutual fund, you need to pay the asset management company (AMC) to manage your money, but you don’t pay anything every month from your pocket. You must be wondering if mutual funds are free. They aren’t. Every mutual fund scheme has a fee, and this is called the total expense ratio (TER). This is the fee charged for mana…